- Weak demand limits broader market recovery
- Trade may slow during Aug due to seasonal holidays
Domestic billet and rebar prices strengthened during the week ended 3 August 2026, supported by improving supply-demand fundamentals and tighter availability. Billet prices increased by 8,500 rial/kg ($6/t) w-o-w to 676,000 rial/kg ($440/t) as a better balance between supply and demand lifted market sentiment. Rebar prices rose by 15,000 rial/kg ($10/t) to 730,000 rial/kg ($475/t), driven by supply constraints despite subdued construction activity.
However, subdued demand limited a broader market recovery. Flat steel prices remained largely stable, with the HRC market balanced by steady supply and demand, while CRC and plate markets continued to face weak downstream demand. Market participants expect billet trading activity to remain subdued through late August due to seasonal holidays and power shortages. However, any depreciation of the rial could encourage higher billet exports, providing further support to long steel prices in the coming weeks.
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